Payroll Services Agreement - 2025

Whereas the Client and Payroll Services (“Parties”) agree to the following terms and conditionsupon which Payroll Services will provide to you, Client, certain payroll processing, payroll tax service and other related payroll services (collectively the “Service”). Payroll Services utilizes OnPay/HomePay for processing payroll. OnPay/HomePay offers convenient online access for our business owners, their employees and Payroll Service staff. Service may be accessed by means of an application via Pacific Northwest Tax Service/Payroll. Please note that all Payroll clients also must use our tax services. Please view business return pricing here: Business & Entity Return Pricing | Pacific Northwest Tax Service (pnwtax.com)

 

Pacific Northwest Payroll Services Duties:

1.       Onboard directly in the OnPay/HomePay payroll system.

2.       Payroll consultation and advice.

3.       Flexible payroll options: direct deposit or paper checks.  

4.       Tax payments to IRS and state agencies through the OnPay system.

5.       Submission of quarterly & annual payroll reports to IRS and applicable states, and issuance of W-2's and 1099’s for contractors.

6.       WR Oregon Annual Withholding Tax Reconciliation Report.

Clients’ Duties:

1.       Client agrees to provide Payroll timesheets with timely data transmission of accurate at least three (3) banking days prior to the pay date. Timesheet Template available.

2.       Client acknowledges that the Tax Filing Services of Payroll Services use information supplied by Client, including payroll data and Federal, state, and local deposit frequencies and identification numbers, and assumes responsibility for the verification and accuracy of this information.

3.       Client agrees that any changes, additions, or deletions to Client master file information will be made known immediately and in writing to Payroll Services. This includes but is not limited to notices or correspondence received from any Federal, state, or local authority with respect to any tax return or deposit made by Payroll Services.

Services provided by OnPay include but are not limited to collection and payment of federal and state payroll taxes from Client's designated financial account and preparation and filing of required payroll reports and forms. OnPay/HomePay tax filing and payment systems are automatic, provided client's account with OnPay/HomePay is current and funds are available in Client's linked financial accounts.

The client is responsible for ensuring funds are available to pay tax and withholding obligations to IRS, state agencies and OnPay/HomePay’s ongoing monthly subscription services fee.

OnPay Subscription Rates

A client’s business must be enrolled in OnPay to receive payroll services from PNW Tax. OnPay rates are in addition to, and separate from, PNW Tax Service rates. As of 2025 OnPay charges a flat monthly rate of $40, plus $6 per employee per month. OnPay will automatically debit the company bank account for payment of payroll taxes and monthly subscription fees.

Home Pay Subscription Rates

A client must be enrolled in HomePay to receive payroll services from PNW Tax. HomePay is a monthly subscription to provide payroll services to household employees. Household employees consist of nannies, care givers, housekeepers, personal assistants, drivers, groundskeepers, personal chefs, etc. HomePay’s basic rate is $58/month, and the premium is $75/month. Please visit their website here to review which option is the best fit. Nanny and Household Tax and Payroll Service | Care.com HomePay

Bank Account information for OnPay/HomePay

Provide your bank account information to be charged for Tax Sweeps, Wage Direct Deposit, and Monthly Service charges: 

PNW Tax Retainer System

1.       Client Payments - Monthly Retainer for Services

Payroll Services bills for services performed through a retainer-based payment system. Once your balance is lower than $100, your card on file will automatically be charged an additional $650 to continue payroll services.

2.       Should the card on file decline payment, an additional service charge of $25 will be applied to your account. If the card is updated, it is the employer’s responsibility to provide the new information immediately.

3.       New retainers are requested on an as needed basis. An email will be sent from QuickBooks informing the employer of their retainer balance and the need for a new retainer. Cards will be run on the following Friday.

Payment of Retainer

Provide your credit card information to be charged for your retainers and kept on file with Pacific Northwest Tax:

The billable rate for Payroll Services in effect for calendar year 2025 is $125 per hour. The time required for complex payroll services can vary considerably based upon the number of employees and employer benefit programs. The hourly rate shall increase by 5-10% annually, effective on January 1 of each year. The typical number of hours we bill for payroll work depends on the complexity and the number of hours worked on each account. Billable hours include customer service time, correspondence about employee accounts, retirement and health account deposits, review time, and time the payroll clerk spends answering questions. The number of billable hours is tailored to your specific payroll account and will vary depending on the complexity of the account. The payroll clerk will determine the exact number of billable hours.  

For payroll consultation, advice, or any additional services outside of the current account, please email Payroll@pnwtax.com with your request.

“Rush/Special Projects/ Manual Work” that demand rapid completion are subject to an increased rate of $325 per hour. Manual work includes Wage Audit Forms employers get yearly and payroll reconciliations for bookkeeping. Please email Payroll@pnwtax.com with your request.

Freese of account Provision:

PNW Tax Payroll Services shall cease to provide payroll services to Client in the following situations:

1.    Client’ card on file declined.

2.    OnPay subscription charge was declined.

The following information is needed to set up your account with OnPay. The 9-Step Onboarding Information will be sent separately, which includes the following information. Please upload the needed information to the Secure Portal or through the Payroll@PNWtax.com email address.

1.       Business Legal name – DBA

2.       Business Legal address

3.       Business EIN

4.       Business Type and industry

5.       Payroll frequency.

6.       Approximate Payroll amount

7.       Number of workers

8.       First check date.

9.       Owners’ personal information – Legal name, Address, SSN, DOB, Phone number.

10.   Ownership percentage.

11.   Business bank account credentials.

12.   Verify bank account - 2 months’ worth of bank statements.

13.   Company Worksite locations.

14.   Oregon BIN.

15.   State business identification numbers for any other state Client has employees.

16.   Oregon and other states SUI rate – Other states have different tax withholding types.

 Tax Resources – Help Center Home (onpay.com)

17.   ODR Log-in credentials.

18.   Oregon Department of Revenue Log-in credentials.

To ensure accurate payroll reporting, Employees are responsible for making sure their information in their profiles is accurate. Forms will be sent separately, which includes the following documents:

1.       Employee Information Form – Legal Name, Home Address, Date of Birth, and Direct Deposit information if applicable.  

2.       Fed W-4.

3.       State W-4.

ailure to comply with these requirements will result in delayed payroll payments and will be subject to additional fees or termination of services with PNW Tax Payroll.

1.       Pay Date: Client shall submit timesheet at least 3 business days prior to the desired pay date,

accurate payroll data to PNW Tax along with written notification of the submission.

2.       Payroll Timesheet: Client must provide hours in a clear format using Excel (use our template), Google Sheets, or through a time and attendance software. Timesheet template can be customized to businesses’ pay items, deductions, and benefits. We have guidelines for timesheets for record keeping.

*Overtime is mandatory under state law for all time worked in a single week that exceeds 40 hours. Overtime may not be reduced by averaging, comp time or other methods. Overtime must be separately stated from regular payroll.

3.       ALL timesheets are to be uploaded via one of the following methods:

·         Client’s Secure Portal at https://pnwtax.securefilepro.com/portal/#/login

·         Email at: Payroll@pnwtax.com

Payroll Services staff agrees to hold all such Confidential Information of the Client in strict confidence and shall not, without the express prior written permission of the client, disclose such Confidential Information to third (3rd) parties or use such Confidential Information for any purposes whatsoever, other than the performance of its obligations hereunder. The obligations under this section shall survive the termination or expiration of this Engagement.

If a client decides that they no longer need PNW Tax payroll to assist them in processing their payroll then termination will occur. Clients may close their business, change providers, or wish to process their payroll on their own. If the client wishes to terminate services, then the following procedures will occur.

1.       The client is closing their business: Please inform PNW Tax Payroll of this information as soon as possible. PNW Tax payroll will inform OnPay of the account changes and OnPay will send a Termination of Services form to the owner of the business through email.

PNW Tax payroll will then close out the week and remaining balance on the account/retainer. If an additional balance is due, then the client’s card on file will be processed on the Friday after termination request.

The client is responsible for filling final 0’s through respective entities. The OR Combined Payroll Tax Business Change in Status Form will also need to be completed and faxed/mailed. If client needs assistance in filling reports the Manual Work rate will be charged.

2.       The client is going to change service providers: Please inform PNW Tax Payroll of this information as soon as possible. PNW Tax payroll will inform OnPay of the account changes and OnPay will send a Termination of Services form to the owner of the business through email.

PNW Tax payroll will then close out the week and remaining balance on the account/retainer. If an additional balance is due, then the client’s card on file will be processed on the Friday after termination request.

3.       The client wishes to process their own payroll using OnPay: Please inform PNW Tax Payroll of this information as soon as possible. PNW Tax payroll will inform OnPay of account changes. OnPay will remove all PNW Tax employees’ access into account and remove partnership roles. PNW Tax will give client OnPay support email as well as phone number for their use.

PNW Tax payroll will then close out the week and remaining balance on the account/retainer. If an additional balance is due, then the client’s card on file will be processed on the Friday after termination request.

PNW Tax payroll has the ability to terminate clients for the reasons listed below. Before proceeding with terminating the client, PNW Tax Payroll may request a Client Resolution Meeting to diagnose the issue(s) and create a plan to resolve the issue(s). PNW Tax Payroll never wishes to lose clients and end work relationships, but in some situations, it may be needed for employee’s safety or wellbeing. PNW Tax payroll is not required to meet with clients if the problem has escalated to a point of no resolution.

1.       The client is not following the procedures listed in the above sections (Employer Onboarding, Clients Duties, Liability Submission of Payroll Timesheets) or state/fed compliances.

2.       The client is disrespectful or harassing PNW Tax payroll staff.

3.       The client is conducting illegal activities within the business and through payroll reporting.

4.       Client’s card on file has declined multiple times leading to a freeze to their payroll account for an extensive amount of time.

This Engagement is the final, complete, and exclusive engagement of the parties with respect to the subject matter hereof and supersedes and merges all prior or contemporaneous representations, discussions, proposals, negotiations, conditions, communications, and engagements, whether written or oral, between the parties relating to the subject matter hereof and all past courses of dealing or industry custom. No modification of or amendment to this Engagement shall be effective unless in writing and signed by each of the Parties.

IN WITNESS WHEREOF the parties have duly executed this Engagement as of the date first written.

Payroll Administrator Section:

Payroll Signature _____________________________________________ Date __________________________

Print Name __________________________________________________________________________________

 

This form must be filled out in its entirety and submitted to be considered an active client of
Pacific Northwest Tax Services - Payroll.